Magistrate Judge Jeremiah McCarthy
Korn was indicted for failing to pay trust fund/payroll taxes for nursing homes in violation of 26 USC §7202. On a suppression motion, the court found Korn entitled only to an evidentiary hearing as to the voluntariness of certain statements—and the government's alleged violation of the no-contact rule—during a June 8, 2010, interview. The hearing's closure on the alleged no-contact rule violation, led Korn to seek the hearing's expansion to address whether his statements to IRS Revenue Officer Reyes—at a Feb. 3, 2010, interview during which Korn was neither informed of his Mirandaright nor that there was an ongoing criminal investigation—were voluntary or resulted from "trickery and deception." The court found no basis to expand the evidentiary hearing. Internal Revenue Manual procedures requiring Miranda type warnings even in non-custodial settings, exceed legal requirements. Nor did Korn know of, or detrimentally rely on those regulations. Under United States v. Prudden, "the mere failure of a revenue agent…to warn [a] taxpayer that [an] investigation may result in criminal charges, absent any acts by the agent which materially misrepresents the nature of the inquiry, do not constitute fraud, deceit and trickery."
